Earthquake Insurance

Why you need Earthquake insurance in California

Earthquake InsuranceEarthquake insurance is NOT provided in the typical homeowners insurance policy. If the only insurance you have for your home is homeowners insurance, you may be unprepared for the consequences of an earthquake.

On average there are more than 800,000 earthquakes per year around the world.  A severe earthquake, with a magnitude greater than 8.0, can be expected every eight to ten years. California Department of Insurance

A magnitude 8.0 earthquake would release over thirty times more energy than the 1994 Northridge earthquake that killed 57 people and caused $20 billion in damage. Despite these numbers, 75% of California homes still do not have earthquake insurance.*

Does yours?

Overview: We proudly offer stand-alone residential earthquake insurance through ICAT Managers Insurance, GoeVera Insurance and Pacific Select.  Obtaining a quote is quick and easy.  Call us at 800-775-8642 or complete our online quote request form and one of our licensed personal insurance specialist will assist you.  We also offer coverage through the California Earthquake Authority in conjunction with your homeowners coverage.

Rates: Premiums are determined differently by each carrier and can vary widely depending on several rating factors. Generally, older homes cost more to insure than newer homes and retrofitting is important for homes built prior to 1960. Remember, however, that the premium should not be the only consideration when purchasing a policy. Often, you can find policies with low premiums but at the expense of adequate coverage. The worst possible scenario would be to find out that the earthquake damage you suffered is not covered by your policy.

Deductibles: The deductible is the portion of the claim that you are responsible for before the insurance company starts to pay. Although deductibles vary by contract, most residential policies offer 10% or 15% deductibles. Deductibles can apply to each individual coverage such as dwelling, personal property or to the combined amount of coverage.

Exclusions & Limitations: Certain types of property are excluded or limited.

Retrofitting Your Home: Retrofitting Information

*From the California Department of Insurance

 

California Earthquake Insurance Coverages

Home:  An earthquake policy for a single family residence may include the following coverages:

  • Dwelling: The structure and all permanently installed fixtures
  • Other Structures: Structures not directly attached to your home (detached garages, guest homes, pools, walkways, etc.)
  • Personal Property: The belongings inside your house
  • Additional Living Expense: Pays if you have to live elsewhere while your house is being rebuilt (Important!)
  • Building Codes & Ordinances: Pays for upgrades to, or demolition of, your home due to building ordinances

Condo or Townhome:  A policy for a condominium or townhome may include the following coverages:

  • Dwelling: This is the unit owner’s additions and alterations. May include floor and wall coverings, plumbing and lighting fixtures, cabinets, installed appliances and interior walls. Consult your CC&R’s to find your responsibilities.
  • Personal Property: The property inside your condo or townhome.
  • Additional Living Expense: Pays if you have to live elsewhere while your house is being rebuilt. (Important!)
  • Building Codes & Ordinances: Pays for upgrades to, or demolition of, your home due to building ordinances
  • Earthquake Loss Assessment: Pays if you are assessed by your homeowners association for an earthquake loss (there are limitations in this coverage).